NEW ORLEANS -- February 28, 2000 -- Qualcomm Incorporated (Nasdaq: QCOM), pioneer and world leader of Code Division Multiple Access (CDMA) digital wireless technology, and RF Micro Devices, Inc. (Nasdaq: RFMD), a leading provider of proprietary radio frequency integrated circuits (RFICs) for wireless communications applications, today announced an alliance to provide advanced power amplifiers (PAs) for the CDMA market. Initially, RFMD and Qualcomm have agreed to cooperate on the development of CDMA PAs for inclusion in present and future Qualcomm CDMA chipsets. Future development may include other RFICs for CDMA.
"Combining Qualcomm's CDMA system, design and software expertise with RFMD's design and process technology will allow Qualcomm to offer the best performing and most cost-effective power amplifiers for the CDMA market," Johan Lodenius, senior vice president of marketing and product management for Qualcomm CDMA Technologies. "As a leading supplier of CDMA chipsets and system software, Qualcomm will continue to offer manufacturers the most integrated and advanced products available."
"RFMD is the world's largest supplier of gallium arsenide (GaAs) heterojunction bipolar transistor (HBT) RFICs," said Jerry Neal, executive vice president of sales, marketing and strategic development of RF Micro Devices. "The CDMA market has been one of our most successful markets, and RF Micro Devices has already delivered more than 50 million RFICs for use in CDMA systems. With our own wafer fabrication plant now in full production, and with a second wafer fab under construction, RFMD has the capacity to fulfill all of Qualcomm's foreseeable GaAs HBT requirements."
The joint development, utilizing the expertise of both companies, is expected to yield products that will provide higher levels of integration and, with advanced packaging technology, enable handset manufacturers to produce phones with smaller form factors and increased talk-time capabilities. Both Qualcomm and RFMD share extensive experience using multiple RF technologies, including bipolar complementary metal oxide semiconductors (BiCMOS) and silicon germanium (SiGe).
Under the agreement, Qualcomm will market and sell the jointly developed CDMA Power Amplifiers using RFMD's wafer foundry for manufacturing. Qualcomm will provide the necessary software and system development tools to enable faster development cycles for manufacturers using the Qualcomm power amplifiers.
RF Micro Devices, Inc., an ISO 9001 certified manufacturer, designs, develops, manufactures and markets proprietary RFICs for wireless communications applications such as cellular and PCS phones, cordless phones, wireless LANs, wireless local loop handsets, industrial radios, wireless security systems and remote meter readers. The Company offers a broad array of products -- including amplifiers, mixers, modulators/demodulators, and single-chip receivers, transmitters and transceivers -- that represent a substantial majority of the RFICs required in wireless subscriber equipment. The Company's strategy is to focus on wireless markets by offering a broad range of standard and custom designed RFICs in order to position itself as a "one-stop" solution for its customers' RFIC needs. RF Micro Devices, Inc. is traded on the Nasdaq National Market under the symbol RFMD.
Qualcomm CDMA Technologies (QCT), a division of Qualcomm Incorporated, is the leading developer and supplier of CDMA chipsets, hardware and software solutions, and tools with more than 80 million Mobile Station Modem (MSM™) chips shipped worldwide. QCT supplies chipsets to the world's leading CDMA handset and infrastructure manufacturers, including: Acer Peripherals, Inc., ALPS ELECTRIC CO., LTD.; CASIO COMPUTER CO., LTD.; DENSO CORPORATION; FUJITSU LIMITED; Hitachi, Ltd.; Hyundai Electronics Industries Co., Ltd.; KYOCERA CORPORATION; LG Information and Communications, Ltd.; Samsung Electronics Ltd.; SANYO Electric Co., Ltd.; and TOSHIBA Corporation, among others.
Qualcomm Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. The Company's business areas include integrated CDMA chipsets and system software; technology licensing; Eudora® email software for Windows® and Macintosh® computing platforms; and satellite-based systems including OmniTRACS® and portions of the Globalstar™ system. Qualcomm owns patents which are essential to all of the CDMA wireless telecommunications standards that have been adopted or proposed for adoption by standards-setting bodies worldwide. Qualcomm has licensed its essential CDMA patent portfolio to more than 75 telecommunications equipment manufacturers worldwide. Headquartered in San Diego, Calif., Qualcomm is included in theS&P500 Index and is a 1999 FORTUNE 500® company traded on the Nasdaq under the ticker symbol QCOM.
Except for the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties, including timely product development, the Company's ability to successfully manufacture significant quantities of CDMA or other equipment on a timely and profitable basis, and those related to performance guarantees, change in economic conditions of the various markets the Company serves, as well as the other risks detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year ended September 26, 1999, and most recent Form 10-Q.